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This is my meeting.

I'm Srini, and the story is that I'm responsible for making this meeting happen because I know we may have a strategic synergy here.

sri a year ago
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Did you see our presentation?

What did you like about it? What would you like to talk about then?

sri a year ago
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Skate to where the puck will be.

sri a year ago
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zero risk steps.

Just fund us so we can get started and then you'll have this option in a few months if everything goes right.

sri a year ago
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feed them OPPORTUNITY, ok?

Samsung made a MISTAKE in abandoning SIOG back in 2007. We want to capitalize on their mistake in 2016 with AUO.

sri a year ago
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DEFEAT SAMSUNG?

sri a year ago
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How do we arrive at our valuation?

100% of the iphone screens of 2019 will be AUO AMOLED 2.0 by Crystal Layer.

Apple sold 221million iPhones in the last 12 months. And we get 3%.

sri a year ago
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What would our firm be valued if...

What if everything goes perfectly for us?

sri a year ago
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Who is better: AUO or Samsung?

What if you could catch up with Samsung and overtake them in AMOLED within five years?

sri a year ago
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it's a MOVING TARGET.

Can you break it down for me?

Let me break it down for you.

sri a year ago
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best ever.

This could be the best thing AUO ever does, if AMOLED 2.0 becomes the standard and nobody else can make it.

sri a year ago
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Give me an idea.

sri a year ago
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Elements of the proposal

  • Market situation
  • Strategic
  • Technical
  • Project
  • Operational
  • Financial
sri a year ago
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ambition -> opportunity.

accelerate AUO AMOLED ambition to control more of the opportunities in the future of display.

sri a year ago
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What barriers to entry?

Our SIOG platform will be a CUSTOM FIT for AUO.

sri a year ago
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It's lucky we met, Peter.

We are your secret weapon.

sri a year ago
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Can't we make money together?

Is there some other way for us to move forward whenever there's an impasse?

sri a year ago
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Describe your problem to us.

Can we get something for all this trouble?

sri a year ago
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Rock paper scissors.

Samsung is Paper, covering AUO, the Rock. We are Scissors, cutting a bit off Samsung that they barely notice. Rock should partner with us or get smothered.

sri a year ago
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GOTTA GET SOME

The mobile industry exploding always makes R&D expenses an attractive proposition.

sri a year ago
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1) make a promise.

2) give proof you can keep it.

sri a year ago
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Happy?

The entire POINT is to MAKE PETER HAPPY!!!

sri a year ago
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Take this seriously.

Are you committed to doing that?

sri a year ago
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We have your back, Peter.

We are ALL IN and want you to join us.

sri a year ago
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The price goes up

If we have to loop in VC or angels, the price that AUO pays goes up, and we lose stealth.

sri a year ago
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How can AMOLED 2.0 help AUO?

What are your TOP 5 PRIORITIES in research and development in 2016?

sri a year ago
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IP as a cost component

What % of your LTPS is IP cost right now?

We are after $3 per screen...

sri a year ago
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Have we come to the right place?

This happens to be our favorite display maker, ever since SID, and we know we have something important to contribute.

sri a year ago
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BOND!

I want to PAIR BOND with Peter. Then we are a team together from there on out!!!

sri a year ago
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Totally!!!

How can we make Peter say YES!!! THAT'S GOOD!!!

sri a year ago
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Let's Break Down The Walls!!!

Bridge gaps.

Generate an environment that supports and celebrates our differences.

sri a year ago
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what do you think?

Ask his advice.

Identify our weaknesses up front.

Good thinking.

sri a year ago
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any innovation is good innovation?

sri a year ago
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Can you, Peter?

Do you have the capability to make a financial decision and have it carried out?

We want AUO to own equity in this company and coordinate the engineering and fab resources to make this happen. Or do we have to talk to someone else next?

Do we have to meet with Paul Peng or can you make the decision on your own?

sri a year ago
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What is AUO going to do in China?

Come at China with a disruptive new manufacturing platform!!!

Taiwan Finally Lets Its LCD Makers Set Up Fabs in China

Competition from other countries forced the hand of Taiwan's government, which had long resisted transfers of key technologies to the mainland.

By Yu-Tzu Chiu Posted 17 Mar 2010

AU Optronics Corp. (AUO), Taiwan’s largest manufacturer of thin-film transistor liquid crystal display panels (TFT-LCD), submitted an application on 15 March to the government confirming its plan to build a 7.5-generation plant in eastern China. It thus became the first Taiwanese LCD maker to take advantage of its own country’s lifting of the ban on building TFT-LCD fabs in China.

The company plans to spend US $1.2 billion initially; the total investment will be about $3 billion. It will begin by processing 60 000 glass substrates a month, with capacity eventually topping out above 90 000 subtrates per month.

A 7.5-gen fab turns out a glass substrate 1950 x 2250 millimeters—big enough for manufacturers to cut it up into eight 42-inch panels, six 46-inch panels, or three 55-inch panels. These specifications fit the Chinese market, which consistently favors screens measuring 42 inches and up.

In terms of revenue, AUO is the world’s third-largest flat-panel maker after Samsung Electronics Co. and LG Display Co., both of Korea. Taiwan’s decision to ease restrictions on its own companies’ investments in China was a defensive response to the aggressiveness of competitors in China in 2009.

The Chinese government in late 2008 expanded its practice of offering subsidies to rural households that purchase electrical appliances, not only to stimulate rural consumption but also to narrow the digital divide between urban and rural regions. To exploit demand for flat-screen televisions above 40 inches in size, Samsung announced in October 2009 that it will establish a joint venture to build a 7.5-gen LCD panel plant in Jiangsu province, in eastern China—an investment of about $2.25 billion. The decision actually preceded the Korean government’s decision in December 2009 that allowed Samsung and LG Display to establish TFT-LCD fabs in China.

In August 2009, Japan’s Sharp Corp., which has been doing business in China for years, agreed with both Nanjing Municipal Government of Jiangsu province and Nanjing China Electronics Panda Group Corp. to sell used 6th-generation equipment and also to help establish an 8th-generation LCD panel production line.

The original ban is a leftover from the days of political hostility between China and Taiwan following the Chinese Civil War. The freeze began to thaw in 1987. Still, Taiwan’s restrictions on China-bound investments continued in various forms under the ”No haste, be patient” policy, to prevent overdependence on China. Even in 2002, when Taiwan’s entry into the World Trade Organization triggered calls for a wider opening of bilateral investment, the country prohibited certain industries from making investments in China in order to prevent China from getting its hands on Taiwan’s intellectual property.

Then, on 20 February of this year, Taiwan lifted the ban on building TFT-LCD and semiconductor fabs in China, enabling Taiwanese panel makers to invest in gen-6 and higher fabs in China—as long as no more than three fabs are involved. Most important, the technology to be adopted in China must be at least one generation behind the most up-to-date one in Taiwan. In addition, any Taiwanese firm filing to invest in China must also produce a plan for new investment in Taiwan. Furthermore, to maintain corporate independence, Taiwanese firms are not allowed to merge with or buy shares in Chinese companies. However, entering into joint ventures with Chinese companies or venture capital firms is acceptable.

”Related regulations ensure that Taiwan still keeps the newest core technologies and, at the same time, more investments will be made locally,” Jing-Yang Jou, deputy minister of the National Science Council, said at a news conference on 23 February.

According to Freda Lee, a spokeswoman for AUO, the company will soon submit its application to the Ministry of Economic Affairs for evaluation in March. Lee says that a gen-7.5 fab can cut some larger-size TV panels from glass substrates in a cost-efficient manner.

LCD industry observers noted that AUO may team up with China’s Infovision Optoelectronics (IVO), in eastern Jiangsu province, a company that has received approval from the Chinese government to establish a 7.5-generation LCD fab. AUO declines to confirm the speculation. ”The location of our new 7.5-generation plant will be not too far from our module plant in Suzhou of Jiangsu province in order to keep transportation cost affordable,” Lee tells IEEE Spectrum.

Lee says that AUO’s business in Taiwan continues to grow as planned, adding that in the second half of 2010 it will begin to install equipment for its second 8.5-generation plant, which is based at the Central Taiwan Science Park. ”We do plan to build a 10th-generation plant in Taiwan, but when to begin the construction remains uncertain,” Lee says.

Nancy Liu, an analyst with Taiwan’s quasi-official Industrial Technology Research Institute, says that Japanese and Korean panel makers have tempered the enthusiasm they had for investment in China in 2009. ”Since early this year, Sharp has experienced difficulties regarding the transportation cost of old 6th-generation equipment, further pending the deal,” Liu notes.

She says China no longer needs all that many foreign-built LCD fabs now that several local makers, such as BOE Technology Group, have received approval to build 7.5-generation and 8.5-generation fabs, together with government financial assistance. ”China aims to form a cluster of LCD [manufacturers] rather than just obtaining some new fabs independently run by foreign investors,” Liu says, adding that Samsung’s insistence on maintaining full independence has caused China’s government to back off a bit.

Samsung will have to form a joint venture in order to set up its factory, but it’s still unclear how it and its Chinese partner would run the venture. Analysts argue that Samsung insists on being the dominant shareholder, further disturbing China.

Meanwhile, though, relations between Taiwan and China continue to get warmer. Since incumbent Taiwanese President Ma Ying-jeou took office on 20 May 2008, Taiwan and China have signed 12 agreements covering tourism, fishery labor cooperation, agricultural quarantine inspection, industrial product standards certification, Chinese tourism in Taiwan, charter flights, direct shipping, direct air links, postal services, food safety, financial services, and cooperation in fighting crime. More such agreements are clearly in the cards.

Therefore, it’s hardly surprising that China has expressed its willingness to assist Taiwanese companies that make LCD panels. Signs of cooperation are apparent. For instance Chi Mei Optoelectronics, Taiwan’s No. 2 LCD maker, and Innolux Display Corp. are now officially merging into a new company, named Chimei Innolux Corp. Liu says the new company might also file an application to set up LCD plants in China.

As Taiwanese panel fabs are built in China, suppliers of related components will certainly follow. These components include glass substrates, backlight modules, polarizers, and integrated circuits. According to Liu, the Taiwanese government’s announcement has worried some glass substrate makers currently operating in Taiwan. When Taiwanese LCD makers launch mass production in China, they will continue to buy components from their own suppliers currently operating in Taiwan, such as Japan-based Asahi Glass Co. and US-based Corning Incorporated. According to Liu, these suppliers might also have to set up braches in China to lower the transportation cost.

As the market for LCD panels takes off, Taiwanese panel makers fabricating in China might do well. But once Chinese competitors obtain key technologies and form a cluster of LCD industrial outfits, China will certainly promote its own firms at the expense of foreign firms, Liu says.

Some analysts, however, note that allowing the establishment of 8.5-generation fabs in China can make Taiwanese firms more competitive. According to Taipei-based Topology Research Institute (TRI), Taiwan’s 7.5-generation fabs might encounter severe challenges when China’s 8.5-generation fabs go into mass production in late 2011. Running 8.5-generation fabs enables Taiwanese makers to effectively occupy the growing market in China, demanding megasize 47-inch and 55-inch television panels, TRI said in a statement dated 2 March.

sri a year ago
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We want a List!

A list is to be generated as an outcome of this meeting.

sri a year ago
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Are you exploring SiOG+ right now?

If not, then exactly what does your department's name mean? Is it really that advanced without us, Peter?

sri a year ago
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ask Peter for more information.

diversity -> prosperity.

sri a year ago
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what is the WIN WIN WIN???

Apple WINS, AUO WINS, CRYSTAL LAYER WINS.

sri a year ago
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Beat Samsung?

How much do you want it?

sri a year ago
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We are a STAR PROJECT

LTPS is a CASH COW for Samsung, and a DOG for AUO.

sri a year ago
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Apple wants AUO to have AMOLED 2.0.

If AUO had AMOLED then Apple would happily buy it from them. AUO is lagging behind the real demand of its biggest customer.

sri a year ago
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Three Scenarios

  • We walk home empty-handed, and either Apple sticks with LCD until AUO can meet capacity with LTPS (wishful thinking?)
  • We walk home empty-handed, and Apple works with Samsung for AMOLED by 2018.
  • AUO has a breakthrough for AMOLED.
sri a year ago
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Who decides here?

What are the consequences of a BAD decision here?

sri a year ago
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New Option For AUO = SIOG

Is LTPS the only way?

sri a year ago
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HARD makes it GREAT.

The harder it becomes, the easier to protect from copycats in China.

sri a year ago
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make Peter happy!

What would make Peter happy with us?

sri a year ago
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Who can get busy like AUO?

If we create a common culture with Peter, then we have Creative Options.

sri a year ago
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Idea Generation Session!

Let's have a BRAINSTORM SESSION to make SiOG+ work for AUO.

sri a year ago
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Do favors.

How can we develop common goals?

sri a year ago
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BRAINTRUST!!!

How often will we talk from here on out?

Schedule right there.

sri a year ago
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Peter, be our GUIDE.

What gives him an incentive to bond with us? Encourage these behaviors.

sri a year ago
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TOGETHER = BETTER.

We have to alert you to this opportunity.

sri a year ago
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SUBJECT

What should I say at the AUO meeting?

sri a year ago
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PRINCIPLES

Value SPEED over R&D expense!!!

sri a year ago
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Is R&D a waste of time?

No!

sri a year ago
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TANGENT!

sri a year ago
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Relationship signals.

What is bothering you, Peter?

sri a year ago
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Principles make it easy to DECIDE and ACT.

"That was easy."

sri a year ago
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HUSTLE

We are fast and focused and flexible. Unlike AUO we are here to BE THE KINGMAKER IN AMOLED.

sri a year ago
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I'll make this real easy for you.

Help us help you!

The more AUO puts into this, the more AUO will get out of this, faster.

Money equals SPEED.

sri a year ago
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Which departments benefit the most?

What happens when you deliver a breakthrough?

How might your own department of Advanced Process benefit from working closely with us next year?

sri a year ago
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Take it to the limit.

Logical extreme word pictures.

sri a year ago
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Our vision of the FUTURE.

If AUO owns equity, we would like to give you the technology to power your next $9bn fab in China. That suggests a time window.

sri a year ago
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OH NO WRONG TECHNOLOGY!!!

Can AUO risk being late to the AMOLED party and possibly using the WRONG TECHNOLOGY in your 9billion dollar fab?

sri a year ago
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RISK = CURRENT COURSE!!!

What will AUO do when Apple switches to AMOLED, Peter?

Copycat technology will never close the gap with Samsung in LTPS.

sri a year ago
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Let's find out.

sri a year ago
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How did you get into LTPS, Peter?

Have you ever taken an outside technology and made it part of AUO?

When did you do that? (LTPS) How did you do that? Why did you do that? When did you know to do that?

Chronic copycats can't win this one.

sri a year ago
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Samsung Steals Customers!

Wouldn't Samsung steal Apple from AUO if the Apple decision to go for AMOLED were to be made today?

sri a year ago
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REGRET!!!

don't let us walk away...

sri a year ago
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Karma Targets.

sri a year ago
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We are different.

SYNERGY comes when you Deal with Differences, ok?

sri a year ago
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Still making LTPS LCD in China - 2010

Taiwan's AUO gets OK for China LCD fab EE Times 12/17/2010

SAN JOSE, Calif. – Taiwan LCD maker AU Optronics Corp. got permission from the Taiwan government to build a generation 7.5 TFT-LCD fab in China. The company pushed regulators for greater openness to help it compete in the global market.

An investment commission in Taiwan's economic ministry approved AUO's request to build the fab. The company is expected to submit to the government additional information to expedite the investment process.

AUO already operates at least eight LCD fabs in three locations in Taiwan, including a generation 8.5 line slated for mass production in 2011. Due to political rivalries, the Taiwan government has long tried to keep a lid on technology transfer to the mainland, a sore spot for many local electronics manufacturers who have sought work arounds to gain access to China's low cost labor and vast markets.

"In a highly competitive international market, Taiwanese panel suppliers now have only very limited time to create early-mover competitive advantages in mainland China," AUO said in a statement announcing the approval. "We must work much harder to catch up," it said, calling on government officials to take a wider perspective.

"We hope the government could consider adopting a more lenient industry policy implemented by Taiwan's competitor countries, lifting the current restriction on fab generation and M&A investments in order to provide Taiwanese manufacturers with more flexibility for its global business strategy and boost Taiwan panel industry's global competitiveness," it said.

AUO had revenues of $11.2 billion in 2009, but took a loss of $852 million. It was profitable from the period 2005-2008.

In February 2010, the Taiwan government opened the door to local companies building TFT-LCD fabs in China. AUO submitted its application for the generation 7.5 fab a month later.

The company already has a wide variety of joint venture partnerships in China to assemble LCD modules and TVs. Its first LCD module assembly plant was set up in Suzhou in July 2002, and a second facility came online in September 2007 in Shanghai.

In April 2010, AUO's board approved joint venture deals to assemble modules and TVs with two of China's Top TV makers, TCL and Haier.

sri a year ago
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Own it?

How do you want to own this IP?

sri a year ago
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Find out their fears.

sri a year ago
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has partnership worked for AUO?

Who was the smallest entity you partnered with? Isn't partnership a great strategy for AUO in this case?

sri a year ago
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The Best On Earth?

Where does AUO derive this identity from? R&D, right? Product excellence?

sri a year ago
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IP HYGIENE!!!

We want to make sure that the Chinese don't steal our approach. We are about BARRIERS TO ENTRY.

sri a year ago
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Common Interest: STEALTH

We both want our R&D to be as secret and surprising as possible to boost its ROI because this industry copies each other left and right.

sri a year ago
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How do you evaluate things?

List your R&D go/no-go criteria for me.

sri a year ago
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Is AUO free to win this game?

What will set funds free for AUO to bring to this project?

sri a year ago
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The hard work is yet to come.

Why is AUO able to do the hard work with us?

How will AUO do it?

sri a year ago
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You ain't seen nothin' yet.

sri a year ago
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Scheduling Conversations?

If we were to work together how often would we communicate? Who would connect and how would they set the agenda? DISTANCE COLLABORATION

sri a year ago
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Go to bat for us inside AUO.

AUO has high standards.

sri a year ago
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Samsung is sort of done with science.

We checked, they aren't interested, they're not really "scientists" anymore, because Apple has beat them in business that's where they feel they have to hire next, rather than R&D. Because they rule LTPS they are just polishing that process and meeting other people's yields and throughputs, which ought to take many years to develop...

sri a year ago
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WE aren't in a hurry.

YOU should probably be in a hurry to get this going with us, Peter.

sri a year ago
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Nobody beats AUO.

Zero mistakes.

sri a year ago
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Football wisdom.

The best defense is a good offense.

Pick up Samsung's fumble and run it back for a touchdown.

sri a year ago
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If we're different, that's good!

Being different adds value.

sri a year ago
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YIN YANG = we're the same organism!

AUO is big, we are small. We work together in a smooth way or not at all.

sri a year ago
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Coachable?

We are here to COACH AUO through the process.

sri a year ago
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AUO = intelligent partner.

Defend AUO jobs with AMOLED 2.0!

sri a year ago
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are you going to quit on us?

We want to build a billion dollar business by royalty licensing our IP only to AUO, who will co-develop, manufacture and sell AMOLED displays.

sri a year ago
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